Why Derby firm is building for the future after sailing choppy seas of recession

After negotiating its way through the downturn in the construction sector, Morecrofts now finds itself on an upward trajectory. The firm, which provides electrical and mechanical services, is seeing its order book fill up. Managing director Jared Mitchell explains why he is looking forward with optimism.

IT has become something of an old cliche but, if you could bottle confidence and sell it, you could make a fortune.

Two years ago, the UK construction sector could have done with a heavy dose of it.

Major projects ground to a halt when the recession hit and building firms started to go into decline. Although Derby came through the downturn fairly well, it was not immune.

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At one point, the city had several major developments waiting to be built – but a lack of confidence was holding developers back.

It was not until last year that some of the magic stuff was sprinkled over the city – resulting in some of these projects beginning to emerge.

Projects like the state-of-the-art Friar Gate Square office development, the £100 million Castleward urban village, the £27.5 million Derby Arena and the Full Street police station and court redevelopment are just a handful of examples.

This confidence permeates through to the supply chain – to firms like Morecrofts.

Three years ago, its managing director, Jared Mitchell told the Derby Telegraph he believed that, when the first developer blinked, the rest would follow.

That happened last year – and Morecrofts is one of the firms reaping the benefits.

So far this year, it has won and carried out several major projects, many of them local.

One of them involved installing new fire alarms and lights at the Assembly Rooms at the start of this year. The alarm system came into its own in March when the Market Place venue was hit by a massive blaze, which started in its car park.

Morecrofts also secured the deal to design and install the electrics at the former magistrates' court in Full Street, which is nearing the end of its £3 million revamp.

Once completed it will feature a new resource library, a cafe and offices, which will be let to small businesses.

According to Jared, Derby City Council's £20 million regeneration fund has played a key role in getting the market moving again.

Morecrofts also carries out projects further afield, such as the new Formula E headquarters at Donington Park, a new school at Tibshelf and a high-tech laboratory at the University of Lincoln.

It has started work on a new hotel in Canary Wharf in London, as well as a large office block refurbishment in Shaftesbury Avenue.

The firm is also continuing to secure contracts which will run until the end of 2015.

Most notably, the company will be involved in the new Innovation Centre – the first building to be constructed on Infinity Park, a new business centre for high-tech companies, near Rolls-Royce's civil aerospace division at Sinfin.

The business has also secured a large project at Nottingham Trent University.

These two projects are worth more than £2.7 million to Morecrofts.

Jared said: "This level of long-term work was unavailable to the business a couple of years ago and is pleasing because it provides job security for all our staff."

The influx of work has resulted in the firm increasing its workforce by 10% to 40 people – and providing work for 100 subcontractors.

The firm has increased turnover this year by 50% to £8.5 million and, with more than £6.5 million secured already for the forthcoming year, it is likely the company will grow turnover further.

This is in stark contrast to a couple of years ago when the firm achieved between £2.5 million and £3 million.

As well as success for Morecrofts, one of its subsidiaries, Ranger Security Systems, which it purchased last year, is also flourishing.

Ranger has been providing CCTV and a door access and alarm system at the new Headlam PLC Project in Coleshill as well as CCTV systems at Regent College, Leicester.

It has also carried out work for the court project and will provide a CCTV and access control system at the Innovation Centre.

Jared said the increase in work for both firms was a sign that the economic recovery looks set to continue.

He said: "There is definitely a more positive feel in the industry – something that we've not seen for a number of years. Projects that had been shelved are now actually moving.

"The quality of inquiries and the likelihood of the projects actually happening has gone up a notch.

"If the momentum continues to increase and companies get busier, there will be a slow increase in margins towards the back end of this year and into 2015.

"Of course, the problem then will be a skills shortage – but it is a problem we are happy to deal with compared to the last recession."